DBRS Confirms All Classes of CSAIL 2015-C2 Commercial Mortgage Trust

DBRS Limited (DBRS) confirmed the ratings of the Commercial Mortgage Pass-Through Certificates, Series 2015-C2 issued by CSAIL 2015-C2 Commercial Mortgage Trust as follows:

-- Class A-1 at AAA (sf)
-- Class A-2 at AAA (sf)
-- Class A-3 at AAA (sf)
-- Class A-4 at AAA (sf)
-- Class A-SB at AAA (sf)
-- Class A-S at AAA (sf)
-- Class X-A at AAA (sf)
-- Class X-B at AA (sf)
-- Class B at AA (low) (sf)
-- Class C at A (low) (sf)
-- Class D at BBB (low) (sf)
-- Class X-E at BB (sf)
-- Class E at BB (low) (sf)
-- Class X-F at B (high) (sf)
-- Class F at B (sf)

All trends are Stable.

The rating confirmations reflect the overall stable performance of the transaction, which has generally remained in line with DBRS’s expectations since issuance. As at the April 2018 remittance, there has been a collateral reduction of 3.2% since issuance, with 117 of the 118 original loans remaining in the pool. Loans representing 60.1% of the current pool balance are reporting YE2017 figures and loans representing 32.9% of the current pool balance are reporting partial-year 2017 financials. The loans reporting YE2017 financials reported a weighted-average (WA) debt service coverage ratio (DSCR) and WA debt yield of 1.80 times (x) and 10.2%, respectively. The DBRS WA DSCR and WA debt yield at issuance for the overall pool were 1.61x and 8.5%, respectively. The largest 15 loans in the pool represent 44.7% of the transaction balance and seven of those loans, representing 20.2% of the current pool balance, reported YE2017 financials, which showed a WA net cash flow growth of 9.6% over the DBRS issuance figures, with a WA DSCR and WA debt yield of 1.87x and 9.5%, respectively. Four loans, representing 1.7% of the current pool balance, are fully defeased.

As at the April 2018 remittance, there were 21 loans on the servicer’s watchlist, representing 14.0% of the current pool balance, and one loan in the top 15, Prospectus ID #6: The Depot, is in special servicing, representing 2.4% of the current pool balance. The bulk of the loans on the servicer’s watchlist are reporting a stable DSCR as at the most recent reporting period and are being monitored for non-performance related issues.

The Depot is secured by a 642-bed student housing property in Akron, Ohio, serving the students of the University of Akron, situated approximately one quarter-mile from the subject. The loan has been in special servicing since July 2016 after cash flow declines led to debt service shortfalls. The loan is current as at the April 2018 remittance and the sponsor remains cooperative with the special servicer. DBRS applied a stressed cash flow scenario in the analysis for this loan with this review, significantly increasing the required subordination levels as compared with the issuance scenario. For additional information on the DBRS view on this loan, please see the DBRS Viewpoint platform, for which information is provided below.

Classes X-A, X-B, X-E and X-F are interest-only (IO) certificates that reference a single rated tranche or multiple rated tranches. The IO rating mirrors the lowest-rated applicable reference obligation tranche adjusted upward by one notch if senior in the waterfall.

All ratings will be subject to ongoing surveillance, which could result in ratings being upgraded, downgraded, placed under review, confirmed or discontinued by DBRS.

As part of this review, DBRS has provided updated analysis and in-depth commentary in the DBRS Viewpoint platform for the following loans in the transaction:

-- Westfield Wheaton
-- Westfield Trumbull
-- The Depot
-- Sterling & Milagro Apartments
-- Hall Office Park G2 Building
-- Lynhaven East
-- LBG Portage

For complimentary access to this content, please register for the DBRS Viewpoint platform at www.viewpoint.dbrs.com. The platform includes issuer and servicer data for the entire CMBS universe, as well as deal and loan-level commentary for all DBRS rated transactions.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The principal methodology is CMBS North American Surveillance, which can be found on dbrs.com under Methodologies. For a list of the Structured Finance related methodologies that may be used during the rating process, please see the DBRS Global Structured Finance Related Methodologies document on www.dbrs.com. Please note that not every related methodology listed under a principal Structured Finance asset class methodology may be used to rate or monitor an individual structured finance or debt obligation.

The related regulatory disclosures pursuant to the National Instrument 25-101 Designated Rating Organizations are hereby incorporated by reference and can be found by clicking on the link under Related Documents or by contacting us at info@dbrs.com.

This rating is endorsed by DBRS Ratings Limited for use in the European Union.

The rated entity or its related entities did participate in the rating process for this rating action. DBRS had access to the accounts and other relevant internal documents of the rated entity or its related entities in connection with this rating action.

For more information on this credit or on this industry, visit www.dbrs.com or contact us at info@dbrs.com.